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Haven’t upgraded to online timesheets? Think your company is too small? You might not realize how paper timesheets are costing you. And it’s not just money. Manual time tracking makes you less efficient at running your business.
Consider these questions:
- Can your employee timekeeping system be exploited?
- If you were audited, could you produce timesheets for the past three years?
- How long does it take you to process payroll?
- Do you pay one of your employees to prepare time cards?
- Is unnecessary overtime inflating your labor costs?
- Do you calculate Paid Time Off (PTO) with spreadsheets?
- Like using phone apps to manage your business?
6 Reasons Why Small Businesses Should Use Online Timesheets
1. Protect Yourself From Employee Time Theft
If your employees report hours on an ‘honor system’ you are at risk for time theft. You might trust your team. Hopefully they are worthy of your trust. But employers who are too trusting can be taken advantage of. Successful businesses ensure employee accountability in all aspects of their jobs. Why even open yourself up to time theft?
Paper timesheets are vulnerable to hours padding and buddy punching. Many employers who switch to a turnkey online timesheet app are surprised by the drop in hours. It’s interesting how automated time tracking puts an end to early clock ins…
Try a free trial of an online timesheet app. Even if you notice just a small reduction, this advantage will compound over time. By the way, many online timesheet apps cost less than $8 a month per user.
2. Comply With Fair Labor Standards Act (FLSA) Recordkeeping Laws
Employee time theft isn’t the only thing to worry about. Without accurate employee hours, you are on shaky compliance ground. There are hundreds of free or low-cost online timesheet apps. Why risk a costly fine with sub-par recordkeeping? The Department of Labor (DOL) audits hundreds of SMBs every year. Even if you have a small staff, you could be audited.
3. Reduce Payroll Processing Time
Let’s talk about payroll. With paper timesheets, you spend time fixing inaccuracies. You chase down missing information. Then you manually enter the data into the payroll system.
When you can approve timesheets in minutes, payroll processing time is slashed. That’s just one side of the equation. Consider this: what is the value of the time saved? What revenue-generating activities could you pursue? Clearly, there is an opportunity cost of time spent processing payroll.
Perhaps you pay one of your employees to approve time cards. If so, the same principles apply. You are paying them a wage. Plus, there is the opportunity cost of the revenue-generating projects they don’t have time for.
4. Control Overtime
If you have hourly employees, overtime can be an issue. Manual systems don’t have built-in alerts to notify you when someone is approaching overtime. The larger your company, the more unplanned overtime costs you. Some online timesheet apps have overtime settings. Reducing overtime hours is one of the easiest ways to shrink your labor costs.
5. Automate PTO Tracking
If you offer PTO (Paid Time Off), I’m sure you understand how important it is to your employees. Calculating PTO can be time-consuming with spreadsheets. If PTO is not tracked correctly, you can be sure your employees will notice. If you haven’t made a PTO mistake yet with spreadsheets, trust us, you will eventually. Online timesheet apps track accruals automatically. That’s one more thing you can take off your plate. (Did I mention that some online timesheet apps cost less than $8 per employee per month?)
6. Manage Employee Timekeeping On Your Phone
If you are already using business apps, you know how handy they are. Online timesheet apps are designed for small screens. Employee timekeeping is a foundational business process. Having the ability to see who is clocked in provides important oversight. Remember, online timesheet apps are employee-facing as well. Your employees can see their schedule, timesheet, and PTO accruals on their phone. Plus, many systems—like TimeWorksExpress—allow your employees to request time off.
When you can see online timesheets at a glance, you can prevent problems. Avoid shift coverage gaps. Optimize labor allocation among ongoing projects. Know where your mobile employees are throughout the day. Eliminate the back-and-forth texting when someone is confused about the schedule.
TimeWorksExpress is an affordable turnkey online timesheet app. You can try TimeWorksExpress online timesheets for free. Start tracking time in about five minutes after entering your employees. Signing up is as quick and easy as creating an Instagram account.
After your free trial, it’s less than $6 per employee per month. Cancel anytime. Using TimeWorksExpress online timesheets may be the best business decision you make this year.
By Liz Strikwerda